Polskie Górnictwo Naftowe i Gazownictwo SA signed a PLN 3.5bn transmission agreement with OGP Gaz-System. It was signed following release of the new Transmission Grid Code, whose regulations were adjusted to the liberalised market.

On December 19th 2012, Polskie Górnictwo Naftowe i Gazownictwo SA issued notes totalling approximately PLN 700m under the Note Issuance Programme of May 22nd 2012.

  Polskie Górnictwo Naftowe i Gazownictwo SA has adopted the Short-Term Value Creation Strategy for the PGNiG Group until 2014. Its objective is to prepare the Company for operating in a liberalised gas market. The PGNiG Group wants to maintain its lead in the exploration and production industry, while remaining the primary supplier of natural gas, whose offering also includes heat and electricity. Thanks to its Short-Term Value Creation Strategy, the PGNiG Group will be able to pursue an ambitious investment programme, while servicing its debt. As a result, by 2020 the Company intends to accumulate a net cash surplus of PLN 15bn.

On December 19th 2012, Polskie Górnictwo Naftowe i Gazownictwo and TAURON Polska Energia signed a letter of intent concerning construction of a 400 MW gas-fired co-generation unit at TAURON's Łagisza Power Plant. The parties undertook to collaborate in construction and operation of the unit, as well as trading in electricity.

The President of the Energy Regulatory Office (URE) has approved PGNiG SA's proposal to lower gas fuel prices, as well as subscription fees for households. The reduction will affect all types of gas sold by PGNiG SA. On average, households' gas bills will go down by 10%. The new tariffs are to come into effect as of January 1st 2013.

TAURON Polska Energia and Polskie Górnictwo Naftowe i Gazownictwo have launched the construction of a CHP plant in Stalowa Wola, the largest gas-fired unit of this type in Poland. The foundation stone was officially laid on December 3rd 2012.

Polskie Górnictwo Naftowe i Gazownictwo SA, as the Leader of the Consortium under the name of Polskie Technologie dla Gazu Łupkowego (Polish Technologies for Shale Gas), filed 12 entries for the Blue Gas competition with the National Centre for Research and Development. The projects carry a total budget of approx. PLN 219m.  Half of that amount will be covered by subsidies from the National Centre for Research and Development, and the other half - by contributions from industry partners forming the Consortium. 

The cooperation between PGNiG and the LOTOS Group in oil and gas exploration is gaining speed. First exploration work will be carried out in four of PGNiG's licence areas situated in the region of Pomerania.

  In connection with Moody's press release of November 20th 2012, on downgrading PGNiG's ratings from Baa1 to Baa2, with a negative outlook, the Management Board of PGNiG SA reports that the Company's liquidity position is secure.

  Polskie Górnictwo Naftowe i Gazownictwo S.A. has discovered another gas field in the Wejherowo licence area in Pomerania. Natural gas flow was identified during drilling of the Opalino well, which was aimed at appraising the hydrocarbon resources in gas-bearing Silurian and Ordovician shales and other geological formations. The flare on the well site started burning.

In Q1-Q3 2012, the PGNiG Group earned net profit of PLN 48m, compared with PLN 1.32bn in the corresponding period of the previous year. In Q3 2012, the Group's net profit dropped 80%, to PLN 65m, from PLN 319m a year ago.   The Group's operating result for Q1-Q3 2012 was most significantly affected by a PLN 1.8bn loss posted by the Trade and Storage segment, responsible for gas purchases and sales. In Q3 2012 alone, the segment's operating result was down PLN 320m year on year, leading to a PLN 350m loss. 

In response to questions arising in relation to possible joint projects with Gazprom and in connection with the Annex to the Yamal Contract of November 5th 2012, the PGNiG Management Board hereby represents that:

  During a meeting between Grażyna Piotrowska-Oliwa, President of the Management Board of PGNiG SA, and Alexander Medvedev, Deputy Chairman of the Management Committee of Gazprom S.A., an agreement was reached concerning a change in pricing terms of the contract for gas supplies to Poland.

  Polskie Górnictwo Naftowe i Gazownictwo SA can already commence the launch of the Lubiatów-Międzychód-Grotów production facility. Having completed technical commissioning, the Company can now undertake work related to the facility's start-up. Thanks to the project, Poland's conventional gas production will increase and domestic output of crude oil will double.

Polskie Górnictwo Naftowe i Gazownictwo SA sold 10.5 billion cubic metres of gas in the first three quarters of 2012, compared with 10.2 billion cubic metres in the corresponding period of 2011. The volume of natural gas produced in Q1-Q3 2012 totalled 3.2 billion cubic metres and remained flat year on year.

VNG - Verbundnetz Gas Aktiengesellschaft (VNG) and Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) have agreed an amended pricing formula under the existing agreement for gas supplies to Poland until 2016.  The new formula will take effect as of October 1st 2012.  The annual supplies of gas to PGNiG will remain unchanged, at 400 million cubic metres.

PGNiG SA launches a new website designed to educate the public about shale gas http://www.lupkipolskie.pl/. Its launch is part of a nationwide campaign planned by PGNiG SA to raise awareness of the issues related to shale gas.

Grupa LOTOS S.A. and Polskie Górnictwo Naftowe i Gazownictwo SA entered into an agreement for joint exploration for conventional and unconventional oil and gas and commercial cooperation. The two companies will assess the potential of PGNiG's seven exploration licences.

Today was the day marking the official launch of south-eastern supply for the city of Gdańsk, and the interconnection system supplying the refinery of Grupa LOTOS S.A. with natural gas. The project is of strategic importance to the region of Pomerania. It will enhance the region's energy security and support its economic growth.

Polskie Górnictwo Naftowe i Gazownictwo SA received a decision of the President of the Energy Regulatory Office to refuse to approve the changes in the gas fuel tariff. The Company is in the process of analysing the grounds for the decision, and has 14 days to appeal against it.